Dipan Mehta, Member, BSE/NSE is of the view that one should stay away from aviation sector.
Mehta told CNBC-TV18, "We have stayed away from the entire aviation sector and consistently maintain the view that it is a sector, which is highly competitive. So one has the pressure on the topline. At the same time, there is little control over the cost because the other players are also competing for the same scarce resources. Therefore the cost continues to rise. Therefore it is going to be very difficult for the aviation industry to deliver spectacular performance going forward."
Further he added,"As an investor, there is no compulsion or necessity to be invested in the any aviation stock. We have got lots of growth stories going around. Although there is good volume growth, I am not sure whether these companies will be able to deliver on profit funds. So my advise to any investor would be to completely stay away from aviation sector and go for some of the other growth sectors which are well known and where there is good visibility."
